Weekly Corporate Affairs Newsletter – SEBI/MCA/IBC/ RBI/IPO/CCI/ LABOUR LAW Updates

Weekly Corporate Affairs Newsletter – SEBI/MCA/IBC/ RBI/IPO/CCI/ LABOUR LAW Updates From 08.03.2022 to 14.03.2022

  1. SEBI UPDATES:
[Sl. Particulars Link 
1 Implementation of Section 51A of UAPA, 1967: Updates to UNSC’s 1267/ 1989 ISIL (Da’esh) & Al-Qaida San ctions List: removal of 2 entries Click Here 
 2 Automation of disclosure requirements under SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011-System Driven Disclosures – Ease of doing business.  Click Here 
3 Change in UPI limits – Revision to Operational Circular for issue and listing of Non-convertible Securities, Securitised Debt Instruments, Security Receipts, Municipal Debt Securities and Commercial Paper Click Here 
4 Adjudication Order in respect of Ashok Kumar Kapoor HUF in the matter of dealings in Illiquid Stock Options at the BSE. Click Here 
5 Right Issues – Letter of Offer of Tilak Ventures Limited Click Here 
 6 SEBI conducts search and seizure operations in multiple locations across country; SEBI cautions investors not to rely on unsolicited investment tips received through Social Media platforms  Click Here 
 7 Extension of timeline for submission of public comments on the Consultation Paper for Environmental, Social and Governance (ESG) Rating Providers for Securities Markets Click Here 
8 Notice convening meeting of the unsecured creditors of HT Media Limited as per the directions of the Hon’ble National Company Law Tribunal, New Delhi Bench Click Here 
9 Adjudication Order in respect of Dayanidhi Mercantile Private Limited in the matter of dealings in Illiquid Stock Options at the BSE Click Here 

2. MCA – 21 UPDATES

Sl. Particulars Link 
 1 Relaxation on levy of additional fees is given till 15.03.2022 for filing of e- forms AOC-4, AOC-4 (CFS), AOC-4, AOC-4 XBRL AOC-4 Non-XBRL and 31.03.2022 for MGT-7/MGT-7A for the financial year ended on 31.03.2021. To avoid any last-minute payment transaction issues, Stakeholders may avail ‘Pay Later option’ for form filings and save the challan which gets generated on the screen for future reference   Click Here 
 2 Stakeholders please note that LLP filing, New User Registration & DSC Association services are live in V3. Please log a ticket on portal or reach out to our Helpdesk at 0120-4832500 or appl.helpdesk@mca.gov.in in case of any issue.  Click Here 
 3 Notice for inviting Applications for company Experts on Mediation and Conciliation, North West Region, Ahmedabad Click Here 
4 Dissolution Notice of M/s Apex Cable Pvt. Ltd & M/s Biwani Cold Rolling Mills Ltd (cos.in liquidation) | Click Here 

3. RBI / BANKS UPDATES

Sl. Particulars Link 
1 Issue and regulation of share capital and securities – Primary (Urban) Co- operative Banks Click here 
2 Interest Equalization Scheme on Pre and Post Shipment Rupee Export Credit – Extension Click here 
3 Exim Bank’s Government of India supported Line of Credit (LoC) of USD 7.29 million to the Government of Cooperative Republic of Guyana Click here 
4 Exim Bank’s Government of India supported Line of Credit (LoC) of USD 500 million to the Government of the Democratic Socialist Republic of Sri Lanka Click here 
5. BE(A)WARE – A Booklet on Modus Operandi of Financial Frauds Click here 
6. Reserve Bank of India launches (a) UPI for Feature Phones (UPI123pay) and (b) 24×7 Helpline for Digital Payments (DigiSaathi) Click here 
7. NaBFID – All India Financial Institution (AIFI) Click here 
8. Reserve Bank of India – Bulletin Weekly Statistical Supplement – Extract Click here 

4. IBC / INSOLVENCY LAW UPDATES

Sl. Particulars Link 
1 Corporate Insolvency Resolution Processes Ending with Order of Liquidation: As on 31st December, 2021 Click here 
2 Corporate Insolvency Resolution Processes Yielding Resolution Plans: As on 31st December, 2021 Click here 
3 Governor of Maharashtra presented Nitin Vinod Shah, Director-IBC, the prestigious Times Applaud Trendsetter Award 2022 Click here 
4 Need fresh look at IBC to bring it back on track Click here 
5 Related party under IBC: Appu Hotels case Click here 

5. LABOUR LAW UPDATES

Sl. Particulars Link 
1 230th meeting of Central Board of Trustees, Employees’ Provident Fund is being organised from 11th-12th March, 2022 in Guwahati, Assam. Click Here 
2 EPFO cuts interest rate to 8.1% for 2021-22, lowest in at least 16 years Click Here 
3 Here’s how to do EPF account transfer from EPFO to employer’s EPF trust Click Here 
4 EPFO processes all pending claims of women across the country Click Here 
5 EPFO investments: Commissioner to get power for prompt decisions Click Here 
6 EPFO urges companies to facilitate e-nomination of women employees Click Here 
7 Labour Minister Shri Bhupendra Yadav releases Book titled ‘Role of Labour in India’s Development’ Click here 

6. PRESS INFORMATION

Sl. Particulars Link 
 1 Government reopens application window for PLI Scheme for White Goods (ACs and LED Lights) from 10th March to 25th April 2022 to give second chance to prospective investors to take benefits of the Scheme  Click here 
2 Repayment of ‘PLI GOI SPL FRS 2022’ Click here 
3 New MoU will help Industry and research institutes from India & Singapore to jointly develop products related to economic & societal challenges Click here 
4 Shri G Kishan Reddy launches the digital platform (E-Marketplace) as part of digital tourism solution for IITFs / IITGs Click here 
5 Ministry of Education to release a detailed Report on Unified District Information System for Education Plus (UDISE+) 2020-21 Click here 
6 Soy product manufacturers are encouraged to take BIS certification for use of Standards Mark (ISI mark) Click here 
7 Atal Innovation Mission, NITI Aayog & KidEx collaborate to promote innovation & entrepreneurship Click here 
8 Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers releases guidelines for the scheme “Strengthening of Pharmaceutical Industry (SPI)” Click here 
9 Ministry of Steel Interacted with Industries of Secondary Steel Sector  on Production Linked Incentive (PLI) Scheme Click here 
10 Department of Consumer Affairs to organize “Consumer Empowerment Week” from 14th to 20th March 2022 to celebrate Azadi Ka Amrit Mahotsav Click here 

7. IPO & INVESTMENT SECTION

Issuer Company Exchange Open Close Lot Size Issue Price (Rs) Issue Size (Rs Cr) 
Hexagon Nutrition Limited IPO BSE, NSE      
Evoq Remedies Limited IPO BSE SME Mar 17, 2022 Mar 22, 2022 4000 27 9.72 
Swaraj Suiting Limited IPO NSE SME Mar 15, 2022 Mar 17, 2022 2000 56 10.68 
KN Agri Resources Limited IPO NSE SME Mar 15, 2022 Mar 17, 2022 1600 71 to 75 49.38 
Bhatia Colour Chem Limited IPO BSE SME Mar 14, 2022 Mar 16, 2022 1600 80 40.00 
Cool Caps Industries Limited IPO NSE SME Mar 10, 2022 Mar 15, 2022 3000 36 to 38 11.63 
  • Key Updates in Brief {Source- ET, BS etc.} 
  1. Sachin Bansal’s Navi Technologies files draft papers for Rs 3,350-cr IPO 

Sachin Bansal-led Navi Technologies has filed preliminary papers with Sebi to raise Rs 3,350 crore through an initial public offering (IPO). 

The proposed IPO is completely through a fresh issue of equity shares and there will be no offer-for-sale (OFS), according to the draft red herring prospectus (DRHP). Flipkart co- founder Bansal, who has invested around Rs 4,000 crore into Navi till date, is not diluting his stake in the IPO. 

According to people familiar with the matter, the initial share-sale is likely to open in June. Going by the draft papers, the company may explore a pre-IPO placement aggregating to Rs 670 crore. If such placement is undertaken, the size of the public issue will be reduced. 

As per its website, Navi is a digital lending app which provides loans of up to Rs 20 lakh instantly through a completely paperless process. ICICI Securities, BofA Securities and Axis Capital, Credit Suisse Securities (India) Pvt Ltd and Edelweiss Financial Services are the book running lead managers to the public issue. To enter the microfinance segment, Navi had acquired Chaitanya India Fin Credit for Rs 739 crore in 2019. To read more: Click Here 

  1. Byju’s closes $800m pre-IPO fundraise at $22b valuation 

Byju’s has raised $800 million in fresh funding as part of a pre-IPO round, the education technology firm said on Friday. Founder and chief executive Byju Raveendran has invested 

$400 million in his personal capacity, people in the know told ET. 

The round, which comes ahead of its planned initial public offering (IPO), values the Bengaluru-based company at about $22 billion, people aware of the development told ET. The mammoth post-money valuation makes it India’s highest-valued startup. 

Byju’s is in talks to hire investment bank Goldman Sachs as one of the lead book managers for its IPO, the sources also said. The company had raised about $300 million in October last year as part of its previous round that valued it at $18 billion. Oxshott Capital Partners, XN Exponent, Edelweiss, Verition Master Fund, IIFL and Time Capital Advisors participated in that round. Byju’s has raised over $2 billion since the onset of the Covid-19 pandemic, using most of the proceeds to acquire other ed-tech companies. To read more: Click Here 

  1. Govt to file final papers for LIC IPO with Sebi soon 

New Delhi: The government is planning to soon file the final papers for LIC IPO with market regulator Sebi, which will provide details about the price band, discount for policyholders and retail buyers, and the actual number of shares to be put on the block, an official said. The government is presently in the wait-and-watch mode because of the market volatility induced by the Russia-Ukraine war and will decide on the timing of the initial public offering (IPO) of Life Insurance Corporation (LIC). 

LIC had, on February 13, filed the draft red herring prospectus (DRHP) for LIC IPO. Earlier this week, Sebi gave approval to the draft papers, paving the way for the share sale. The government was expecting to garner over Rs 60,000 crore by selling about 31.6 crore or 5 per cent shares in the life insurance firm to meet the curtailed disinvestment target of Rs 78,000 crore in the current fiscal. 

As per the draft prospectus, LIC’s embedded value, which is a measure of the consolidated shareholders’ value in an insurance company, was pegged at about Rs 5.4 lakh crore as of September 30, 2021, by international actuarial firm Milliman Advisors. 

  1. Sebi tightens IPO valuation scrutiny, jolts startups eyeing listings 

India has tightened scrutiny of IPO-bound firms by questioning how key internal business metrics are used to arrive at valuations, unsettling bankers and companies which fear delays in listing plans, sources with direct knowledge told Reuters. 

India’s push comes after the flop listing of SoftBank-backed payments firm Paytm’s $2.5 billion IPO in November which sparked criticism of lax oversight of how loss-making companies price issues at what some say are lofty valuations. 

The Securities and Exchange Board of India (SEBI) last month flagged concerns in proposing stricter disclosures, saying more and more new-age tech firms which “generally remain loss making for a longer period” were filing for IPOs, and traditional financial disclosures “may not aid investors.” 

But even before the proposal is finalised, SEBI has in recent weeks asked many companies to get their non-financial metrics – KPIs, or key performance indicators — audited, and then explain how they were used to arrive at an IPO’s valuation, 5 banking and legal sources said. 

Regulators in major markets including Hong Kong do follow practices that subject companies to tighter scrutiny about their business practices and financials, but they don’t usually make granular checks on valuation metrics. To read more: Click Here 

8. IRDAI – INSURANCE UPDATES

Sl. Particulars Link 
1 Disclosure of underwriting philosophy of offering Health Insurance Coverage to Transgender persons Click here 
2 GROSS DIRECT PREMIUM UNDERWRITTEN FOR AND UPTO THE MONTH OF FEBRUARY, 2022 Click here 
3 Empanelment of Suppliers of Housekeeping Material and Pantry Items Click Here 
4 Empanelment of suppliers of Stationery items Click Here 

9. DEPARTMENT OF TELECOMMUNICATIONS (DOT)

Sl. Particulars Link 
1 Clarification regarding fake websites Click here 
2 DD India on Yupp TV – Global OTT Platform widens reach Click here 
3 Under #NewIndia’s flagship #BharatNet project, ~2 Lakh gram panchayats connected by laying 552514 Km of Optical Fibre Cable (OFC) till November 1, 2021. Click here 
 4 190 new BTSs added in NE LSA in Feb’22.Meghalaya (68),Manipur(27), Arunachal(56),Mizoram (16), Nagaland(13) & Tripura(10).46 uncovered villages now on Digital Telecom map.Growing Steadily Click here 
5 Registration for M2M Service Providers and M2M connectivity providers and license authorisation for UL/UL-VNO (M2M) is now available on the SaralSanchar portal (http://saralsanchar.gov.in). Click here 

10. MSME / SME UPDATES

Sl. Particulars Link 
1 Shri Narayan Rane launches Special Entrepreneurship Promotion Drive for Women – “SAMARTH” on the occasion of International Women’s Day 2022 Click here 
 2 Union Labour Minister Shri Bhupendra Yadav lauds EPFO and ESIC for running a special campaign for women on International Women’s Day Click here 
3 MSME ministry launches scheme to promote creativity, entrepreneurship in sector Click here 
 4 Shri Narayan Rane launches MSME Innovative Scheme (Incubation, Design and IPR) & MSME IDEA HACKATHON 2022 under MSME Champions Scheme  Click here 
5 Covid, lockdown hit MSMEs hardest, their bad loans spiked Rs 20,000 crore in 2020-21 Click here 

11. COMPETITION COMMISSION OF INDIA

Sl. Particulars Link 
1 CCI approves acquisition of Prione Business Services Private Limited by Amazon Asia-Pacific Resources Private Limited Click here 
2 CCI approves acquisition of 100% share capital of L&T Investment Management Limited by HSBC Asset Management (India) Private Limited Click here 
3 CCI decides not to pursue case related to Amazon Seller Services  Click here 
4 CCI approves HSBC AMC’s $425 million buy of L&T’s mutual fundbusiness Click here 

12. CABINET DECISIONS / NEW ACTS  

Sl. Particulars Link 
1 Cabinet approves Memorandum of Understanding signed between the Indian Council of Medical Research, India and Deutsche Forschungsgemeinschaft e.V. (DFG), Germany Click here 
2 Cabinet approves establishment of WHO Global Centre for Traditional Medicine in India Click here 
 3 Cabinet approves Memorandum of Understanding signed between the Indian Council of Medical Research, India and the National Institute of Allergy and Infectious Diseases, National Institute of Health of Department of Health and Human Services, USA  Click here 
 4 Cabinet approves Amendment of the Second Schedule to the Mines and Minerals (Development and Regulation) Act, 1957 for specifying rate of royalty in respect of certain minerals  Click here 
5 Ministry of Tourism invites final comments on draft report for setting up National Digital Tourism Mission Click here 
6 The Central Board recommends 8.10% rate of interest to its subscribers for the year 2021-22 Click here 

13. CURRENT AFFAIRS QUIZ (TAKEN FROM VARIOUS SOURCES)

Sl. Questions Answers 
1 Who was the first Chief Justice of Free India? Justice Kania 
2 Who was the first Chief Justice of England? Coke 
3 Who was the first Law Minister of India? Dr. B. R. Ambedkar 
4 Which state in India first abolished the Land Tax? Haryana 
5 Can a writ of mandamus be issued against President of India No 
6 Where is the unwritten constitution in force? England 
7 Who was the first woman advocate in India Cornelia Sorabji 
8 ‘UDISE+ Report’, which was released recently, is associated with which field? Education 
9 European Organization for Nuclear Research –CERN has recently suspended the observer status of which country? Russia 
10 What is “PARAM Ganga”, which was seen in the news recently? Super-computer 
  • Top 5 Current Affairs:  
  1. RBI Governor Shaktikanta Das launched UPI for feature phones called UPI123Pay. He also launched 24×7 helpline for digital payments named ‘DigiSaathi’. UPI 123Pay will allow customers to use feature phones for all transactions except scan and pay. It doesn’t need an internet connection for transactions while customers have to link their bank account with feature phones to use this facility. 
  1. Chhattisgarh Chief Minister Bhupesh Baghel launched the ‘Kaushalya Matritva Yojana’. Under this scheme, financial assistance of Rs 5000 will be given to women on the birth of second girl child. He also released ‘Kanya Vivah Yojana’ Coffee Table Book and Sakhi One Stop Center Telephone Directory. The Chief Minister visited the stalls set up as part of the four-day-long state-level ‘Mahila Madai’.
  2. The Union MSME Ministry recently launched SAMARTH — a special entrepreneurship promotion drive for women. Under SAMARTH, 20 per cent seats in free skill development programmes, organised under skill development schemes of the Ministry, will be allocated for aspiring and existing women entrepreneurs.
  3. Pune Metro project has been undertaken by MAHA Metro, a SPV (Special Purpose Vehicle) of Government of India and Government of Maharashtra. The Prime Minister Narendra Modi inaugurated the 12-km stretch of the total 32.2 km Pune metro rail project. The total cost of the project is over ₹ 11,400 crore. It includes Automatic fare collection system with combination of smart cards & computerized paper tickets.
  4. The Delhi Government has recently inaugurated individual health clinics in 20 government schools. They were inaugurated by Deputy Chief Minister and Education Minister Manish Sisodia. The clinics will provide routine health check-ups as well as counselling to ensure the children’s physical and mental well-being.
    The End
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